rate caps

Definition

Restrictions on how much of a rate adjustment can be applied to an ARM, frequently expressed in the following fashion: a/b/c. "A" is the largest rate change at the initial rate adjustment, "b" is the largest change for all following adjustments, and "c" represents the largest allowable increase over the first rate throughout the contract's lifetime.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
rate anticipation swap rate card